Increase in monthly allowance for retired elderly commune officials in Vietnam from September 15, 2023

Hello, Lawnet would like to clarify your question as follows:

On August 01, 2023, the Ministry of Home Affairs of Vietnam issued Circular 11/2023/TT-BNV guiding the adjustment of monthly allowances for elderly retired commune-level town, commune, and ward officials, effective from September 15, 2023.

1. Increase in monthly allowance for retired elderly commune officials in Vietnam from September 15, 2023

Applicable subjects according to Circular 11/2023/TT-BNV:

Elderly retired commune, ward, and commune-level town officials currently receiving monthly allowances in accordance with Decision No. 130-CP dated June 20, 1975, of the Government of Vietnam supplementing policies and benefits for commune-level officials and Decision No. 111-HDBT dated October 13, 1981, of the Council of Ministers amending and supplementing several policies for commune- and ward-level officials (hereinafter referred to as elderly retired commune-level officials).

According to the provisions of Article 2 of Circular 11/2023/TT-BNV, the specific adjustment of monthly allowances is as follows:

From July 01, 2023, the monthly allowances for elderly retired commune-level officials will be adjusted in accordance with Article 2 of Decree 42/2023/ND-CP adjusting pensions, social insurance benefits, and monthly allowances as follows:

- Increase by 12.5% the monthly allowance based on the allowance enjoyed as of June 2023 for the subjects specified in Article 1 of Circular 11/2023/TT-BNV.

The monthly allowance enjoyed from July 01, 2023, is calculated by the following formula:

Monthly allowance enjoyed from July 01, 2023 = Allowance enjoyed as of June 2023 x 1.125

In which: The allowance enjoyed as of June 2023 is the allowance specified in Clause 3, Article 2 of Circular 02/2022/TT-BNV guiding the adjustment of the monthly allowance from January 01, 2022, for commune, ward, and commune-level town officials retired according to Decision 130-CP and Decision 111-HDBT.

- From July 01, 2023, after adjusting the monthly allowance for elderly retired commune-level officials according to Clause 1 of this Article, if the monthly allowance is below 3,000,000 VND/month, the allowance will be adjusted as follows:

+ Increase by 300,000 VND/person/month for those receiving a monthly allowance below 2,700,000 VND/person/month;

+ Increase to 3,000,000 VND/person/month for those receiving a monthly allowance from 2,700,000 VND/person/month to below 3,000,000 VND/person/month.

- Based on the provisions at Clauses 1 and 2, Article 2 of Circular 11/2023/TT-BNV, elderly retired commune-level officials shall enjoy the rounded-off monthly allowance from July 01, 2023, as follows:

+ For former positions such as Communist Party Secretary, Chairman of the People's Committee, Deputy Secretary, Deputy Chairman, Standing Member of the Communist Party, Secretary of the People's Committee, Secretary of the People's Council, Commune Military Chief, and Commune Police Chief: 3,000,000 VND/month;

+ For other positions: 2,817,000 VND/month.

Thus, the monthly allowance for elderly retired commune-level officials will be increased by 12.5% from July 01, 2023, compared to the previous allowance.

2. Provisions on positions and titles of commune-level officials in Vietnam

- Commune-level officials specified in Clause 1, Article 2 of Decree 33/2023/ND-CP have the following positions:

+ Secretary, Deputy Secretary of the Communist Party;

+ Chairman, Deputy Chairman of the People's Council;

+ Chairman, Deputy Chairman of the People's Committee;

+ Chairman of the Vietnam Fatherland Front Committee;

+ Secretary of the Ho Chi Minh Communist Youth Union;

+ Chairman of the Vietnam Women's Union;

+ Chairman of the Vietnam Farmers' Union (applicable to communes, wards, commune-level towns with agricultural, forestry, fishery, and salt activities and having the Vietnam Farmers' Union);

+ Chairman of the Vietnam Veterans' Association.

- Commune-level civil servants specified in Clause 1, Article 2 of Decree 33/2023/ND-CP have the following titles:

+ Chief of the Military Command;

+ Office - statistics;

+ Cadastral - construction - urban and environment (for wards and commune-level towns) or cadastral - agriculture - construction and environment (for communes);

+ Finance - accounting;

+ Justice - civil status;

+ Culture - society.

Based on the provisions of Article 5 Decree 33/2023/ND-CP.

Best regards!

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